3. Life Annuities and Life Insurance (10 marks) (a) At age 35, David buys a 6-year temporary life annuity of $10,000 per annum to be paid at the beginning of each year for his retire- ment. Find a net single premium for David, if the first payment is made at age 65. Assume that r(t) = 5%. (5 marks) (b) A man currently aged 45 purchases a 5-year term insurance that pays a benefit of $90,000 with r = 4%. Find the net single pre- mium of the death benefit